Many banks offer financial advisory services alongside traditional banking services. The convenience, alongside offers like free checking, make it a tempting offer. But should you use the financial advisor through your bank? Here’s what you need to know about working with a financial advisor through your bank, and if that’s the best option.
Financial Advice Through a Bank - What to Consider
Banks offer critical financial services, but that industry wasn’t designed to provide investment advice and other financial advisory services. While many banks do offer these services, they’ve been added on to their original offerings - and often come with a much steeper price tag.
You also have to consider if an advisor through your bank is afiduciary.A fiduciary is an individual who acts in the best interest of a particular person or beneficiary. Financial advisors who work through a bank may not be a fiduciary - meaning, they can (and are often encouraged) to offer you financial advice that’s in the best interest of the bank, not necessarily what’s the best option for your investment.
With an advisor through a bank, there always exists that uncertainty about their conflict of interest - how can you be sure that your advisor is offering you the best advice for you, and not just the advice that benefits the bank the most?
Financial Advice from a Greater Midwest Financial Group Financial Advisor
A financial advisor is someone who offers advice on both your short-term finances and long-term finances. They can help you plan where to save money, how to invest your money and what types of accounts to open.
The benefit of choosing a financial advisor that isn’t affiliated with a bank is you remove that conflict of interest, as well as better rates for those services.Every financial advisorat Greater Midwest Financial Group is a fiduciary, anda Five Star Wealth Manager.
Work with our experienced financial advisors and get the chance to:
- Explore the amount of risk you should take for returns you can potentially expect
- Ease the transition during pre- and post-retirement years
- Plan for the future - no matter what’s in store
- Manage and grow your assets
- Invest wisely and strategically
- Plan for college, retirement, elder care and other major life expenses
You can depend on GMFG to offer the best advice for your situation, to maximize your investments and return.
Greater Midwest Financial Group is a financial advisory firm serving St. Paul, Minneapolis, and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management, and other personal finance needs.
FAQs
Working with a bank financial advisor can save you money on your banking and loan products. Many banks look at your total relationship to waive monthly fees on your bank accounts or offer discounts on loans. Depending on your banking needs, these savings can be dramatic.
Should I use a financial planner or the bank? ›
A financial advisor or planner can be a great resource in helping you achieve your financial goals. As qualified professionals, they provide guidance on personal finance and wealth management and facilitate your financial planning so that you can make smart money decisions that help your money work harder.
When not to use a financial advisor? ›
Here's when you may want to forgo a financial advisor and do it yourself: You're confident in managing your own investments: If you are comfortable selecting and managing your own investments, you may not need a financial advisor.
Is it worth it to pay for a financial advisor? ›
If, however, you have some money you want to invest, maybe you run a business, or you come into an inheritance, a financial advisor is a good idea to help you navigate financial decisions. Their time might seem expensive, but consider the time you would need to spend to learn as much as they know.
At what net worth should I get a financial advisor? ›
Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.
At what point is it worth getting a financial advisor? ›
A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.
What bank has the best financial advisors? ›
Top financial advisor firms
- Fidelity Investments.
- Fisher Investments.
- Facet.
- Vanguard.
- Mercer.
- Edward Jones.
- BlackRock.
- Charles Schwab.
Advisors can charge a percentage of assets, upfront or back-end commissions, a flat fee, or an hourly rate. Some financial advisors charge clients on a retainer basis. Always ask a potential advisor for detailed information about their rates and fee structures.
How do bank financial advisors get paid? ›
Commissions. In this type of fee arrangement, a financial advisor makes their money from commissions. Advisors earn these fees when they recommend and sell specific financial products, such as mutual funds or annuities, to a client. These are often payable in addition to the above client fees.
What financial advisors don t tell you? ›
10 Things Your Financial Advisor Should Not Tell You
- "I offer a guaranteed rate of return."
- "Performance is the only thing that matters."
- "This investment product is risk-free. ...
- "Don't worry about how you're invested. ...
- "I know my pay structure is confusing; just trust me that it's fair."
Those who use financial advisors typically get higher returns and more integrated planning, including tax management, retirement planning and estate planning. Self-investors, on the other hand, save on advisor fees and get the self-satisfaction of learning about investing and making their own decisions.
Is a 1% fee worth it for a financial advisor? ›
While 1.5% is on the higher end for financial advisor services, if that's what it takes to get the returns you want, then it's not overpaying, so to speak. Staying around 1% for your fee may be standard, but it certainly isn't the high end. You need to decide what you're willing to pay for what you're receiving.
Is 2% fee high for a financial advisor? ›
Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.
How much money should you bring to a financial advisor? ›
Some traditional financial advisors have minimum investment amounts they require to work with clients. These can range from $20,000 to $500,000 or even more.
Can banks offer financial advice? ›
They can also help you make decisions with your money that will aim to help you reach your financial goals as efficiently as possible. Financial advice can cover a range of services such as, investing, inheritance tax planning, pension planning and protection.
Should I use a financial advisor or do it myself? ›
Those who use financial advisors typically get higher returns and more integrated planning, including tax management, retirement planning and estate planning. Self-investors, on the other hand, save on advisor fees and get the self-satisfaction of learning about investing and making their own decisions.
What are the disadvantages of having a financial advisor? ›
Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for. The saying, “price is an issue in the absence of value” is accurate.
